For those looking to build an investment property portfolio fast, a property syndicate may be a good option. In this article, we discuss the benefits of property syndicates and why they’re worth considering.
A property syndicate consists of a group of investors. They pool funds together to invest in to secure, high yielding property. Any income from the property gets shared between the members, as stipulated in their syndicate agreement.
Property syndicates in Australia are often associated with the commercial and industrial sectors. Though it may be worth considering for the residential sector too. Members of a syndicate can be anyone from family, friends and workmates to a group of people with the common goal of attaining financial freedom.
One of the obvious benefits of property syndicates is that you need less capital in the initial stages in comparison to investing alone. Let’s look at some of the other benefits.
Access to more funds means that your syndicate can acquire property that is higher in value with potential for strong returns.
A property syndicate makes investing in several properties more achievable. A property syndicate lets you grow your investment property portfolio at an accelerated rate and maximise your returns.
One of the most attractive benefits of property syndicates is diversification. Opportunities to invest in commercial, industrial, retail and leisure properties are often unattainable for solo investors. But pooled funds make it easier to break into these property markets. And as a result, you can diversify your portfolio and reduce your risk.
Investing in a managed property syndicate avoids lots of administrative duties, saving you a lot of time. As you need less capital to get started and will have less ongoing expenses to cover as a shareholder, a property syndicate can save you money too.
Australia’s secure lending arrangements, taxation benefits and vigorous government policies make investing in property appealing. A property syndicate may enable you an entry point into the market quicker than you may have had planned with the ability to access larger scale developments.
The population continues to increase as does the demand for housing, office and industrial spaces. The Australian property market is resilient. It continues to grow and so great opportunities for property investors continue to present themselves.
Investing in (the right) property syndicate requires in-depth due diligence. There is also a 100% chance you’ll need sound property investment, finance and accounting know-how as well as legal advice to lean on.
At Bolt & Hunter, our team of property experts are here to educate and guide property syndicates to their ideal acquisitions. By having the support of a buyer’s agency like ours, you can confidently navigate the process of property syndication and secure the properties with the greatest potential.
There’s no time like the present. In the words of Will Rogers, “Don’t wait to buy real estate, buy real estate and wait.”.
Contact us to see how we can help you make your dreams for the future a reality.